IDC REPORTS SECOND QUARTER 2009 RESULTS
Calgary, Alberta – July 30, 2009 - Imaging Dynamics Company Ltd. (IDC or the Company) (TSX: IDL) a global supplier in the high growth digital radiography (DR) equipment market, today reported financial results for the three and six months ended June 30, 2009.
Second Quarter 2009 Highlights
- Increased revenue by 48.1 percent to $3.9 million during the second quarter of 2009 compared to $2.6 million during the first quarter of 2009;
- Increased gross margins to 30.4 percent for the second quarter of 2009 compared to 25.9% for the first quarter of 2009;
- Reduced receivables by $1.8 million compared to December 31, 2008 on the collection of approximately $8.0 million during the first half of 2009; Days Sales Outstanding (DSO) for the quarter reduced to 72 days from 156 days for the same quarter last year and, lowest in the last four years;
- Reduced inventory by $1.2 million compared to December 31, 2008;
- Reduced payables and accruals by $1.3 million compared to December 31 2008;
- Established a $1 million credit facility during the quarter which has not been drawn as of today;
- Cash and cash equivalents decreased by $0.8 million to $0.3 million at June 30, 2009 from $1.1 million at December 31, 2008;
- Sales and marketing, general and administrative, production and manufacturing and research and development expenses were reduced by 48.6 percent to $1.8 million from $3.4 million during the quarter compared to the same quarter last year and were reduced by 50.1 percent to $3.7 million from $7.4 million on a year to date basis compared to the same period last year;
- Reduced total expenses by 41.8 percent to $2.6 million from $4.5 million during the quarter compared to the same quarter last year and reduced by 46.9 percent to $4.8 million from $9.1 million on a year to date basis compared to the same period last year;
- Purchase orders received during the second quarter and opening backlog totaled $4.6 million ($3.9 million shipped and recognized, $0.7 million booked to closing backlog);
- Gross revenues were lower by 26.8 percent compared to the same quarter last year and lower by 44.2 percent on a year to date basis; which was largely due to the decline in revenues in United States (“US”) as a result of the slowing economic conditions; and
- Gross margins were 30.4 percent for the quarter compared to 23.6 percent for the same quarter last year and 28.6 percent compared to 28.8 percent on a year to date basis; which were also impacted due to lower margin sales during the period, the global pricing pressures on digital radiography products and the continued utilization of inventory that was purchased during previous quarters.
Net loss was for the second quarter of 2009 was $1,425,850 or $0.02 of basic and diluted loss per share compared to a net loss of $3,250,176 or $0.05 of basic and diluted loss per share for the same quarter last year. Year-to-date net loss was $2,939,443 or $0.04 of basic and diluted loss per share compared to a net loss of $5,708,699 or $0.09 basic and diluted loss per share for the same period last year.
Commenting on the second quarter 2009 results, Tom Boon, IDC’s President and CEO said, “With both a 48.1 percent revenue growth and a gross margin increase to 30.4 percent compared to the first quarter of 2009, as well as the continued quarter over quarter improvement on our balance sheet, I believe that IDC is demonstrating to our customers and the shareholders that our strategic initiatives are working. Our expenses are in line with expectations and we are effectively managing our working capital without having to access the credit facility that is now in place with existing investors. I am pleased that every employee of this company is focused on the fundamentals of running a sound operational business.”
Boon continued, “There were consistent results from the Asia Pacific region with our OEM business and good systems sales in both India and Canada during the quarter. We continue to refine our channel initiatives to improve access to the markets for our detectors and for participation in selected public tenders in the emerging markets for our systems. With strategic initiatives in place for the U.S. market and a healthy sales funnel for each of the other regions, the outlook for the second half of 2009 is encouraging. In this uniquely challenging time, I am confident that IDC is on the right path for profitable growth.”
A conference call to review the results will take place on Friday, July 31, 2008 at 8.00 a.m. EDT (6.00 a.m. MDT).
To participate in the call please dial 416-644-3417 or 800-731-5774 approximately 5 minutes prior to the conference call.
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President and Chief Executive Officer
Executive Vice President and Chief Financial Officer
Statements in this release which describe IDC's intentions, expectations or predictions, or which relate to matters that are not historical facts are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties which may cause the actual results, performances or achievements of IDC to be materially different from any future results, performances or achievements expressed in or implied by such forward-looking statements. IDC may update or revise any forward-looking statements, whether as a result of new information, future events or changing market and business conditions. Known and unknown risks and uncertainties include: IDC's ability to manufacture its products with a sufficient level of quality and in volumes which satisfy market demand; the ability of IDC to establish direct and indirect sales channels; the ability of IDC to establish industry partnerships; IDC's ability to attract and retain key personnel; the strength and breadth of IDC's patents; and other factors relating to general economic conditions, specific industry conditions and IDC's particular situation.